FG to pay marketers N163m fuel subsidy daily in April

are indications that the Federal Government is set to pay N163 million fuel subsidy daily to oil marketers because the slight increase in crude prices.

A survey of markets showed that oil prices have increased from about $29 to $40 per barrel, indicating additional cost to refining companies.

Already, the Petroleum Product Pricing Regulatory Agency, PPPRA which had discouraged the government from paying subsidies because of prolonged era of very low crude prices has advised it to start payment.

The PPPRA believed that it has become necessary for the president Buhari-led administration to commence the subsidy payment from April, this year.

The agency put the subsidy at N4.09 per liter in its April, 2016 template posted over the weekend.

This amounted to N163 million daily as the nationâ€™s estimated daily demand for fuel hovered at 40 million liters.

The tank farm owners were chosen because they have the capacities to store and facilitate lifting to filling stations.

A Capital Oil source indicated that loading which started a few days ago goes on day and night in order to enable the government tackle the fuel scarcity.

Unlike before, many stations were open to motorists and others to buy the product, even though many still find it difficult to buy fuel.

However, the Organisation of Petroleum Exporting Countries, OPEC noted in its March, 2016 report that the OPEC Reference Basket recovered in February for the first time in three months, gaining 8.4per cent or $2.22 to reach $28.72/b.

The cartel disclosed that in the emerging economies, India and China are seen continuing to expand at a considerable pace of 7.5per cent and 6.3per cent, respectively.